Viejo Bancorp and its only subsidiary, Mission Viejo National Bank, posted consolidated net income of $1.4 million for 1986, a big turnaround from the $1.9-million loss incurred in 1985.
The company's unaudited financial statement shows that most of the net income came in the last quarter, when it earned nearly $1.1 million, compared with the previous year's fourth-quarter loss of $583,000.
The Mission Viejo-based company's earnings were affected by about $500,000 in non-recurring charges for legal and consulting fees and loan losses, said William T. Brady, Viejo Bancorp's chairman and largest stockholder with 25% of the shares.
Last spring, Viejo's president, Jack Barnes, had predicted that the bank would earn $500,000 to $1.5 million for the year.
"Our main income was developed from mortgage banking," Barnes said. "It's basically where we made all our money, and we're going to continue doing that."